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It is January 2nd and senior management of Digby meets to determine their investment plan for the year. They decide to fully fund a plant

It is January 2nd and senior management of Digby meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing 75,000 shares of stock plus a new bond issue. Assume the stock can be issued at yesterdays stock price ($38.50) and leverage changes to 2.8. Which of the following statements are true? Select all that apply.
Select: 3
Total assets will rise to $241,230,461
Digby will issue stock totaling $2,887,500
Working capital will remain the same at $13,152,131
Total liabilities will be $153,993,357
The total investment for Digby will be $28,488,845

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